§39-14  Federal tax exempt status;preference; protection.  (a)  Bonds issued pursuant to this part, to theextent practicable, shall be issued to comply with requirements imposed byapplicable federal law providing that the interest on the bonds shall beexcluded from gross income for federal income tax purposes (except as certainminimum taxes or environmental taxes may apply).  The director of finance isauthorized to enter into agreements, establish funds or accounts, and take anyaction required in order to comply with applicable federal law.  Nothing inthis part or this chapter shall be deemed to prohibit the issuance of bonds,the interest on which may be included in gross income for federal income taxpurposes.

(b)  For the purpose of insuring that intereston bonds issued pursuant to this part which is excluded from gross income forfederal income tax purposes (except as provided in subsection (a)) on the dateof issuance shall continue to be so excluded, no state officer or employee, oruser of a project or program shall authorize or allow any change, amendment, ormodification to a project or program financed or refinanced with the proceedsof the bonds which change, amendment, or modification thereto would affect theexclusion of interest on the bonds from gross income for federal income taxpurposes unless the change, amendment, or modification shall have received theprior approval of the director of finance.  Failure to receive the approval ofthe director of finance shall render any change, amendment, or modificationvoid. [L 1988, c 28, pt of §3]